Daily Market Analysis (SHORT TERM) Monday 10/22/12

Confirmation of a top with a range violation on 10/15/12 @ 112.92. Confirmation of a top with a close violation on 10/18/12 @ 112.42. Downside Targets = 110.86 – 109.36.

New lows made on current move Friday @ 109.90. STR3MO = 108.20.

December Brent Crude sank lower again on Friday, cracking through $110 briefly and closing at its lowest price in more than two weeks.

Look for a lower opening on Monday as news of Iranian-US nuclear negotiations may dilute some of the fear premium that has been priced into this market as Brent may once again challenge the Short Term support zone of $106.50 – $107.18.

Projected Daily Range: 2.31

Projected Weekly Range: 5.35

Projected Monthly Range: 12.02

WTI Crude Oil (December):

Short Term Trends are bullish.

Confirmation of a bottom with a range violation on 10/17/12 @ 92.80. Confirmation of a bottom with a close violation on 10/09/12 @ 92.39. Upside Targets = 94.91 – 95.83.

December WTI Crude Oil started Friday off with a bang, making new highs for the week before looming concerns over lower global growth expectations crept back into the market.

WTI should be able to find some initial support just below $90 on Monday but if it is unable to sustain a rally to help the market close above $91.73, look for WTI to fall back lower to retest the contract lows at $88.09.

Confirmation of a bottom with a range violation on 10/19/2012 @ 3.592. Confirmation of a bottom with a close violation on 10/19/2012 @ 3.617. Upside Targets = 3.629 – 3.747.

November Natural Gas moved to new 2012 highs on Friday at $3.647 as the market tried to follow through on Thursday’s bullish extension but failed to deliver a strong close, settling just above the day’s mid-range.

Look for our maximum Intermediate term upside objective of $3.747 to keep a lid on the market as it continues to struggle to find strength in the resistance zone of $3.602 - $3.747.

About the Author

Parrish Hicks Capital Research is a trading and technical analysis firm that specializes in Energy and Metal commodity futures. The two founders, Jim Parrish and Kris Hicks, have a combined 38 years’ experience in the commodity business and in 2011 accurately forecasted both $25 moves to the downside in May and July and the $25+ move to the upside in October. They also called the all-time high day for Gold on September 6, 2011 and forecasted a projected downside target of 1528.10 in March 2012. Their trading methodology has a high degree of accuracy which confirms tops/bottoms, projected trading ranges and projected targets for those ranges. Their expertise is focused on 16 commodities plus the comparable ETF markets. You can reach them at Jim@ParrishHicks.com and Kris@ParrishHicks.com or at www.ParrishHicks.com.